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2026 Supreme(Gau) 708

THE GAUHATI HIGH COURT (THE HIGH COURT OF ASSAM, NAGALAND, MIZORAM & ARUNACHAL PRADESH) 
MANISH CHOUDHURY, J.
Barun Basumatary, S/o. Sri Gautam Basumatary  - Petitioner
Versus
Bodoland Territorial Council (BTC) represented by its Principal Secretary, Kokrajhar – Respondent 
Writ Petition (C) No. 198 of 2026 
Decided On : 02-04-2026

Advocates Appeared:
For the Petitioners:Ms. D. Das, Advocate
For the Respondent: Ms. N. Choudhury, Standing Counsel, BTC Mr. R.R. Gogoi, Standing Counsel

A tender process must strictly adhere to statutorily mandated digital auction procedures; failure to do so renders the process illegal. Furthermore, a provisional letter of intent does not constitute a concluded contract, and an authority retains the administrative power to cancel tenders for systemic improvements without infringing upon bidder rights.

Headnote:(A) Tender Process - Regulatory compliance - Statutory mandate for e-Auction - Bidding process initiated through sealed tenders in contravention of mandatory e-Auction rules is legally unsustainable - Authorities are duty-bound to follow the prescribed mode of auction in spirit of legislative intent. (Paras 14, 15, 17)

(B) Contract Law - Letter of Intent - Nature and scope - Issuance of a provisional document expressing intent does not create a binding or concluded contract - Mere indicator of willingness to enter into an agreement in future does not confer vested rights upon the bidder. (Paras 19, 20, 21)

(C) Administrative Law - Right of participants - Power of state to cancel tender - No enforceable right resides in a bidder to demand contract execution in the absence of a concluded agreement - Cancellation of tender for adopting transparent protocols is a valid administrative decision if devoid of unfair discrimination or arbitrariness. (Paras 22, 23, 24)

Facts of the case:
A prospective bidder participated in a tender initiated for the grant of mineral concessions. Despite being declared the highest bidder and receiving a provisional letter of intent, the authorities decided to abandon the non-electronic tender process to implement a mandatory digital auction system. The petitioner sought the court's intervention to stop the cancellation of the original tender process and enforce the award of the concession.

Findings of Court:
The court observed that the relevant rules mandate that all mining contracts be granted exclusively through digital auctions. Consequently, the original tender invitation using manual sealed bids was illegal from inception. The court further held that a provisional letter of intent is conceptually insufficient to constitute a finalized contract, and thus no vested right was infringed by the administrative decision to switch procurement modes to ensure regulatory compliance.

Issues: The primary issues were whether the mandatory requirement for digital auctions rendered the earlier tender process illegal and whether the issuance of a provisional letter of intent created a binding contract that could not be revoked by the authority.

Ratio Decidendi: The principle that a legal requirement for a specific procedure must be strictly followed was applied, confirming that methods other than those statutorily prescribed are forbidden. Furthermore, a non-concluded contract expressed merely through a provisional intent letter does not restrict the authority's administrative prerogative to cancel tenders for improving process transparency.

Result: Petition dismissed; the authorities were directed to refund the security deposit to the petitioner, with interest applicable in case of delay.

Table of Content
1. procedural history and factual foundation of the tender dispute. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. review of the petitioner's grievances and respondent's administrative justification for cancellation. (Para 8 , 9 , 10)
3. statutory mandate requiring mineral concessions to be granted exclusively through e-auction. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17)
4. legal nature of a provisional letter of intent and the requirement for a concluded contract. (Para 18 , 19 , 20 , 21)
5. scope of judicial intervention in administrative tender cancellation processes. (Para 22 , 23)
6. final determination on the merits of the writ petition and directions for restitution of funds. (Para 24 , 25)

JUDGMENT :

MANISH CHOUDHURY, J.

Heard Ms. D. Das, learned counsel for the petitioner; Ms. N. Choudhury, learned Standing Counsel, Bodoland Territorial Council [BTC]; and Mr. R.R. Gogoi, learned Standing Counsel, Environment & Forest Department.

2. The instant writ petition under Article 226 of the Constitution of India is filed to assail a decision conveyed by the respondent no. 2 to the respondent no. 3 vide an Office Letter no. BTC/Forest-27/2025/70 dated 24.12.2025.

3. The facts which are not in dispute, can be exposited at first, in order to appreciate the issues involved in the writ petition. By a Notice Inviting Tender [NIT] dated 25.08.2025, the respondent no. 4 invited sealed tenders with validity period of 180 days for grant of Mineral Concession as per the provisions of the Assam Minor Mineral Concession Rules, 2013 in certain specified Minor Mineral Concession areas [Mahals] within the Baksa Forest Division as per the schedule mentioned therein. One of the Mahals in which the Mineral Concession was to be granted by the NIT dated 25.08.2025 was ‘Barnadi Sand Gravel & Stone Mahal No. 11’ for the contract period : 2025-2032. It was informed to the bidders that the NIT contained details of the Minor Mineral Concession area [Mahal] along with the terms and conditions of grant and the same could be procured from the office of the respondent no. 4 during working hours on payment of a sum of Rs. 1,000/- by demand draft of the State Bank of India [SBI] payable in favour of the respondent no. 1.

4. As per the NIT, the last date of submission of sealed tender at the office of the respondent no. 4 was up to 02-00 p.m., 16.09.2025. In response to the NIT dated 25.08.2025, three bidders including the petitioner, submitted their sealed tenders for settlement of the Minor Mineral Concession area, ‘Barnadi Sand Gravel & Stone Mahal No. 11’ [hereinafter also referred to as ‘Barnadi No. 11 Mineral Concession Area’, at places, for easy reference]. The tenders so received were opened and evaluated by a Bid Quotation Committee on 04.10.2025 in the office of the respondent no. 4 under the Chairmanship of the respondent no. 4. After opening of the bids, the Bid Quotation Committee prepared a Comparative Statement and recorded their comments as regards submission of essential documents / certificates, etc., by the respective participant bidder. Upon evaluation, the Bid Quotation Committee found that the petitioner with a tendered amount of Rs. 20,60,000/- emerged as the highest valid bidder [H-1]. The other two participant bidders’ tendered amounts were Rs. 20,58,000/- and Rs. 20,55,550/- respectively. Upon consideration, the Bid Committee decided to approve the bid of the petitioner and to allot Barnadi No. 11 Mineral Concession Area to him after observance of all official formalities.

5. The decision taken by the Bid Quotation Committee stood forwarded to the respondent no. 2 for approval. The respondent no. 2 vide an Office Letter dated 13.11.2025 conveyed to the respondent no. 3 that the Competent Authority in the Bodoland Territorial Counsel [BTC] had approved the highest quoted tender as per the Comparative Statement, that is, the tender of the petitioner for Barnadi No. 11 Mineral Concession Area. Subsequent to the approval, the respondent no. 4 inti

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